Textile History

Textile History The term 'Textile' is a Latin word originating from the word 'texere' which means 'to weave' Textile refers to a flexible material comprising of a network of natural or artificial fibers, known as yarn. Textiles are formed by weaving, knitting, crocheting, knotting and pressing fibers together. Textile Museum is that specialized category of museum which primarily preserves different types of textile and textile products History of Textile The history of textile is almost as old as that of human civilization and as time moves on the history of textile has further enriched itself. In the 6th and 7th century BC, the oldest recorded indication of using fiber comes with the invention of flax and wool fabric at the excavation of Swiss lake inhabitants.In India the culture of silk was introduced in 400AD, while spinning of cotton traces back to 3000BC. In China, the discovery and consequent development of sericulture and spin silk methods got initiated at 2640 BC while in Egypt the art of spinning linen and weaving developed in 3400 BC.The discovery of machines and their widespread application in processing natural fibers was a direct outcome of the industrial revolution of the 18th and 19th centuries.The discoveries of various synthetic fibers like nylon created a wider market for textile products and gradually led to the invention of new and improved sources of natural fiber.The development of transportation and communication facilities facilitated the path of transaction of localized skills and textile art among various countries.

Textile History of Various Countries :India Indian textile enjoys a rich heritage and the origin of textiles in India traces back to the Indus valley Civilization where people used homespun cotton for weaving their clothes.Rigveda, the earliest of the Veda contains the literary information about textiles and it refers to weaving. Ramayana and Mahabharata, the eminent Indian epics depict the existence of wide variety of fabrics in ancient India. These epics refer both to rich and stylized garment worn by the aristocrats and ordinary simple clothes worn by the common people. The contemporary Indian textile not only reflects the splendid past but also cater to the requirements of the modern times. Japan In 1869 the capital of Japan was shifted from Kyoto to Tokyo and from this time onwards the Nishijin weaving tradition seemed threatened with extinction. The industry again started to grow along with Japan's new capitalist economy by 1890 when the Nishijin weavers embraced and applied modern technology to their own ancient and original textile art. The textile art of Japan particularly reached an epitome of excellence by exhibiting a cultural distinction and remarkable artistic skill in the Edo and succeeding Meiji periods (1868 - 1912). China Chinese textiles enjoy an excellent heritage in textile sector and occupy a prominent position in the global textile market. Chinese textiles are world famous and extraordinary for their fine quality and profound symbolic meanings. Textiles in china often form an integral aspect of its heritage and symbolically reflect its tradition and culture.In China, textile is often closely associated with prosperity and involved in the process of elaborate rituals. Parents' spontaneous love for their children is most visibly reflected

through the excellent clothes they provide on festive occasions to their children. These clothes are made up of expensive materials and excellent craftsmanship. Africa In the ancient times the most important aspect of textiles or more precisely cloth in Africa was that cloth was used as form of money. The width of cloth strip was usually standardized in each region of Africa and therefore there used to be a regular number of such standard length cloth strips required to make a woman's wrapper cloth. This would then be used to serve as the unit of value. Cloth was a convenient form of money primarily because it was used by everybody, fairly durable and easily sub dividable. The weavers, dyers and other textile artists of Africa together makes an active contribution in creating exquisite and amazing range of textiles. African textiles usually embody a great variety of styles. Adinkara, kente and bogolan are some of the some of the African textiles which are becoming increasingly popular while some others like Yoruba, ase-oke and adire are equally beautiful but less well known.

Indian Textile Industry The Indian textile industry is one of the largest and most important sectors in the economy in terms of output, foreign exchange earnings and employment in India. The industry has several vast sectors within it, that is, the mill sector, the clothing or garment sector, the handloom sector and the power loom sector. Each of these sectors employs lakhs of workers and also contributes significantly to the national economy. India has a natural competitive advantage in terms of a strong and large multifibre base, abundant cheap skilled labour and presence across the entire value chain of the industry ranging from spinning, weaving, and made-ups to manufacturers of garments. India’s textile industry comprises mostly small-scale, non-integrated spinning, weaving, and finishing and apparel-making enterprises. We are equipped with latest world-class machineries. Keeping pace with latest technology, we have continually upgraded the machines to meet stringent quality parameters of spun yarn. With extensive automation, we have minimized manual handling of the product. India has a large pool of skilled low-cost textile workers, experienced in technology skills. India’s cotton textile industry has a high export potential. Cost competitiveness is driving the penetration of Indian basic yarns and grey fabrics in international commodity markets. Small and flexible batches of apparels can be manufactured in India and can provide a larger variety of casual wear and leisure garments at significantly lower costs. Besides natural fibre such as cotton, jute and silk, synthetic raw material products such as polyester staple fibre, polyester filament yarn, acrylic fibre and viscose fibre are produced in India. Where heavy duties are imposed in the overseas countries for importing textiles on account of anti-dumping, Imports from India s not at all included for levying such duties.

At present, the textile industry is undergoing a substantial re-orientation towards other then clothing segments of textile sector, which is commonly called as technical textiles. It is moving vertically with an average growing rate of nearly two times of textiles for clothing applications and now account for more than half of the total textile output. The processes in making technical textiles require costly machinery and skilled workers. The application that comes under technical textiles is filtration, bed sheets and abrasive materials, healthcare upholstery and furniture, blood-absorbing materials and thermal protection, adhesive tape, seatbelts, and other specialized application and products In brief, the textiles sector has its own strengths & a great potential to attain growth if it uses the opportunities in a right direction.

Strengths :1) India enjoys benefit of having plentiful resources of raw materials. It is one of the largest producers of cotton yarn around the globe, and also there are good resources of fibre like polyester, silk, viscose etc. 2) There is wide range of cotton fibre available, and has a rapidly developing synthetic fibre industry. 3) India has great competitiveness in spinning sector and has presence in almost all processes of the value chain. 4) Availability of highly trained manpower in both, management and technical. The country has a huge advantage due to lower wage rates. Because of low labor rates the manufacturing cost in textile automatically comes down to very

reasonable rates. There is an immense scope for textiles industry in India as it is the second largest employment generator after agriculture. 5) The installed capacity of spindles in India contributes for 24% share of the world, and it is one of the biggest exporters of yarns in the global market. Having modern functions and favorable fiscal policies, it accounts about 25% of the world trade in cotton yarn. 6) The apparel industry is largest foreign exchange earning sector, contributing 12% of the country's total exports. 7) The garment industry is very diverse in size, manufacturing facility, type of apparel produced, quantity and quality of output, cost, requirement for fabric etc. It comprises suppliers of ready-made garments for both, domestic or exports markets.

Opportunities :1) The industry has the potential of doubling the export earnings by the year 2010. The regulatory polices is helping out to enhance infrastructures of apparel parks, Specialized textile parks, EPZs and EOUs. 2) The Indian manufacturers and suppliers are improving design skills, which include different fabrics according to different markets. Indian fashion industry and fashion designers are marking their name at international platform. 3) The industry is anticipated to generate new jobs in various sectors until 2010, with the doubling of GDP & increase in exports.

FASHION DESIGN AND TEXTILES The textile industries collaborate with a whole host of professionals, all expert from fashion to and fibers. Does expert play a pivotal role in textile and fashion interrelationship: they guide the textile companies, de signers and technologies , advising them about future range and predicting why or how there ranges will appeal to the consumer. Part of the mechanizes the relation between fashion and textile is rooted in trends and those influence the preliminary stages of fibre production. Trends in fibres and fabrics develop from information gather from professionals in fashion, textile mills, and other industries expert. From the primary level , colour and fabric trend information is then disseminate throw out the fashion and textile industries. Then initial judgments and choices in textiles focus on colour. At this early stage views and consider opinions are drawn from industries expert such as international colour authority (ICA). And the color association of the U.S. the friber and fabrics industries also resoles issues of texture, production and construction, which are typically informed by demand with in fashion. The textile industries is steered by fabrication requirements that to the fashion designer stitulates. The fashion designer’s relationship with fabric can be intensely personal. The intensity is very apparent and haute couture level, more so than at any other level and so largely due to the fact that indulgence and personal expression can be afloat at this level. Desires can develop designs idea by draping with a fashion fabric, they real material rather then toiling with substitute like calico. In the late 1940 and early 1950. Jacques fath, Parisian couterier to royalty and movies stars would create designs by moldings fabric directly on to a model responding to the fabric as he worked, rather then sketching first. Contemporary example of designer eternally searching for the right fabric and communicating there personal philosophies.

Textile Sector In India An Overview :The textile industry is the single largest foreign exchange earner for India. Currently it accounts for about 8 % of GDP, 20 % of the industrial production and over 30 % of export earnings of India and it has only 2-3 % import intensity. About 38 million people are gainfully employed with the industry making it the second largest employment providing sector after agriculture. The textile policy of 1985 and the economic policy of 1991 accelerated the economic growth during 1990s. Textile sector growth has been led by the spinning and the manmade fibre industry. The number of cotton/ manmade fibre textile mills rose from 1035 in 87-88 to 1741 by December, 1997. The number of spinning mills number rose to 1461 in December 1997 from 752 in 87-88. Liberalization led to the installation of open end rotors and setting up of Export Oriented Units (EOU). Currently India has the second highest spindle age in the world after China. Aggregate production of cloth during 1996-97 was 34,265 million sq. meters, an increase of nine percent over 1995-96. India's contribution in world production of cotton textiles was about 12 % a decade back, while currently it contributes about 15 % of world cotton textiles. The production of silk has increased from 9498 tones in 1987-88 to 14,093 tones in 1996-97. For wool, which is another major raw material , India depends on imports, especially from New Zealand, to meet its requirements. Growth rate in exports of textiles/ clothing during 1996-97 was 11%. Introduction of a soft loan scheme during the 7th plan called Textile Modernization Fund Scheme (TMFS) facilitated the process of modernizing textile industry significantly. Indian textile industry has performed remarkably well during the last

one decade, but it still needs to carve a competitive edge through quality output and high value addition especially when today India is on the fast track of globalization.

Swot analysis of Indian textile industry Strengths:1. Indian Textile Industry is an Independent & Self-Reliant industry. 2. Abundant Raw Material availability that helps industry to control costs and reduces the lead-time across the operation. 3. Availability of Low Cost and Skilled Manpower provides competitive advantage to industry. 4. Availability of large varieties of cotton fiber and has a fast growing synthetic fiber industry. 5. India has great advantage in Spinning Sector and has a presence in all process of operation and value chain. 6. India is one of the largest exporters of Yarn in international market and contributes around 25% share of the global trade in Cotton Yarn. 7. The Apparel Industry is one of largest foreign revenue contributor and holds 12% of the country’s total export. 8. Industry has large and diversified segments that provide wide variety of products. 9. Growing Economy and Potential Domestic and International Market. 10. Industry has Manufacturing Flexibility that helps to increase the productivity. Weaknesses:1. Indian Textile Industry is highly Fragmented Industry. 2. Industry is highly dependent on Cotton. 3. Lower Productivity in various segments. 4. There is Declining in Mill Segment. 5. Lack of Technological Development that affect the productivity and other activities in whole value chain.

6. Infrastructural Bottlenecks and Efficiency such as, Transaction Time at Ports and transportation Time. 7. Unfavorable labor Laws. 8. Lack of Trade Membership, which restrict to tap other potential market. 10. Higher Indirect Taxes, Power and Interest Rates. Opportunities:1. Growth rate of Domestic Textile Industry is 6-8% per annum. 2. Large, Potential Domestic and International Market. 3. Product development and Diversification to cater global needs. 4. Elimination of Quota Restriction leads to greater Market Development. 5. Market is gradually shifting towards Branded Readymade Garment. 6. Increased Disposable Income and Purchasing Power of Indian Customer opens New Market Development. 7. Emerging Retail Industry and Malls provide huge opportunities for the Apparel, Handicraft and other segments of the industry. 8. Greater Investment and FDI opportunities are available. Threats:1. Competition from other developing countries, especially China. 2. Continuous Quality Improvement is need of the hour as there are different demand patterns all over the world. 3. Elimination of Quota system will lead to fluctuations in Export Demand. 4. Threat for Traditional Market for Powerloom and Handloom Products and forcing them for product diversification. 5. Geographical Disadvantages. 6. International labor and Environmental Laws. 7. To balance the demand and supply. 8. To make balance between price and quality.

Textile Industry Policies Indian Textile Industry plays a vital role in Indian economy. For the proper functioning and operation of industry it is very essential to have some policies and regulation in place. In India, the Ministry of Textile is responsible for the formulation of policy, planning, execution, development, export promotion and regulation of the Textile Industry and related sectors. There are several other bodies and organizations which help to formulate and execute these policies. All policies should be implemented for the greater development of the whole industry so that it can help to strengthen the economy. Industry Policy :There are no restrictions regarding location for establishing manufacturing units. All producers of Clothing and Accessories are exempt from obtaining Industrial License to manufacture. The declicensed undertakings, however, are required to file an Industrial Entrepreneur Memoranda (IEM) in Part 'A' with the Secretariat of Industrial Assistance (SIA), and obtain an acknowledgement. No further approval is required. After commencement of commercial production, Part B of the IEM has to be filled in. Certain items of clothing are reserved for small-scale industries.

Policies Related To Textile Industry :01 Trade Policies 02 Non-Trade Policies 03 Investment & FDI Policies 04 National Textiles Policy 2000 01. Trade Policies Tariff policy; India & US have reached on an Agreement for reciprocal market access commitments for Textiles and Apparel with the negotiation of the WTO Agreement on Textile & Clothing. It provides elimination of Quota system of Textiles & Apparel from 1st January 2005. Under Indo-US Agreement of 1st January 1995, India agreed to reduce tariffs on Textile & apparel and remove all the restrictions on these products. From 1st April 2000, Govt. Of India reduced tariffs on: . Manmade Fibers & Filament Yarns from 35% to 20% · Cotton Yarn from 25% to 20% · Spun, Blended, and Woolen Yarn from 40% to 20 % Grey Fabrics and certain Cotton Yarns are exempt from basic Excise Duty. Customs duty on Polyester Filament Yarns is reduced from 10% to 7.5%. Duty on other Filament yarns will be remain at 10%. Customs duty on Polyester Staple fibers is reduced from 10% to 7.5%. Duty on other Man Made Staple fibers will be remain at 10%. Customs duty on Raw Materials such as DMT, PTA and MEG reduced from 10% to 7.5%. For Small Scale Industries there is Full Exemption Limit being increased from Rs.1 crore to Rs.1.50 crores.

Most of the products fall under HS code 61 and 62 carry an import duty of 56.83% which includes 30% basic duty, 16% additional duty and 4 per cent special additional duty. Excise duty on Nylon Chips has been reduced from 16% to 12%. Optional excise duty on Nylon Fish Net Fabrics is increased from 8% to 12%. Excise Duty Exemption on specified Textile Machinery Items is withdrawn and 8% Excise Duty is imposed. CST rate reduced from 4% to 3% with effect from April 1, 2007. Removal of surcharge on income tax on all firms and companies with a taxable income of Rs.1 crore or less. Import Liscening; India has liberalized its Import regime for Textiles and apparel, but some of the part is still limited for market access. Currently, there is no import restriction for yarns & fabrics items. Apparel & Made-up textiles goods require a Special Import License (SIL). Govt. revised Exim Policy on 31st March 1999 by eliminating Import Licensing Requirements for 894 consumer goods, agriculture products and textiles. On 28th December 1999 India and Us signed an Agreement for the elimination of import restrictions of 1,429 agriculture, textiles, consumer goods and apparel. India removed restrictions on 715 tariff items as of 1st April 2000.

Custom Procedures; Marking, Labeling, and Packaging Requirements: Marking, Labeling, and Packaging Requirements for Textile products are technically complex and difficult to implement.

EXIM Policies; Duty Entitlement Passbook Scheme: DEPS is available for Indian Export Companies and Traders on a Pre-Export and Post-Export basis. Pre-Export credit requires the beneficiary firm has exported during the preceding 3-year period. The Post-Export credit is a transferable credit that exporters of finished goods can use to pay or offset custom duties on imports of any unrestricted goods. Export Promotion Capital Goods Scheme: This scheme is available to export companies and traders who provide the GOI with information about which type of goods and what value of Capital Goods they will import. And they also inform what will be the outcome of export they expect to produce from those imports. Depending upon the export commitment GOI provides them a license to import capital goods duty-free or preferential rates of duty. Pre and Post Shipment Financing: The Reserve Bank of India provides Indian Exporters Pre-Shipment Financing through commercial banks for purchasing raw materials and packaging materials by presenting Letter of Credit. RBI also0 provides Post-Shipment Financing through commercial banks at preferential rates by presenting export documents.

Export and Special Economic Zones: Govt. of India has established Export Processing Zones (EPZs) and Special Economic Zones (SEZs). In EPZs units can import goods free of custom duty. There is 5-year tax holiday to any industrial unit in EPZs. Govt. has allowed 100% Fore3ign ownership of units under EPZs and SEZs. The Govt. considers SEZs as foreign territory for trade and tariff purpose. Units under SEZs may engage in Manufacturing, Trading and Services. Units are exempt from routine checking of exports by customs, and they can sell in the domestic market on payment of duty as applicable to imported goods.

Duty Drawback Scheme: The basic objective of this scheme is to reduce the indirect taxes on exports. Exporters can get refund of the excise and import duty. Through this scheme they can be more competitive and have more potential market. 02 Textile Non Trade Policies Technology Up gradation Fund; As there is huge competition in international Textile Industry therefore the Indian Textile Industry has to be technologically well versed. Industry has been facing problem with high capital cost to improve the technology and modernization of Textile and Apparel Industry. Under the TUF scheme, Textile and Apparel Manufacturing Units can take Loan from IDBI Bank, SIDBI, and The Industrial Finance Corporation Of India at interest rate of 5 % points lower than normal rates. This scheme also helps for IT Development, Product Development, Diversification and Research & Development through funding. In 2006-07 Rs.535 crores were allotted for the scheme and, Rs.911 crores have been allocated for the same for 2007-08.

Cotton Technology Mission; To improve the performance of Cotton sector, there is need for improvement in Research & Development, quality and productivity of products. The Marketing Infrastructure also needs improvement. The Govt. of India is aimed to increase production of cotton by 50% with improved quality and productivity. Quota Entitlement Policy;

Textile and Apparel Industry in India was running under the terms of Multifiber Arrangements (MFA) over the many years. Under MFA, USA, European Union (EU), Canada, and Norway did negotiation for bilateral agreements with India and other textile exporting countries that had limits or quota on their specific textile exports. Construction of Apparel International Mart; Apparel Export Promotion Council has constructed an Apparel International Mart (AIM) at Gurgaon. This will provide showrooms on lease and license basis to the established exporters to showcase their products. 03 Textiles FDI policies After the economic reforms Indian Govt. has taken many initiatives for investment in Textile Industry. The Govt. has liberalized its investment policies for the Textile Industry. Lot of investment has been made for the growth and development of various sectors of Textile Industry. For this purpose Govt. of India has launched many schemes and plans. The RBI provides approval within 2 weeks to all proposals that involve foreign equity up to 51 % in the manufacturing of textile products. Investment is increased from Rs.7349.00 crores in 2004-05 to Rs 15,032.00 crores in 2005-06. During 2003-06 the total investment in Textile and Clothing was around Rs. 42,978.00 crores. For Technology Upgradation Funds Scheme, Rs 916 billion has been issued for technology upgradation. Around 26 Apparel Parks are opened in eight states in India, with a total investment of Rs 134 billion.

Industrial Entrepreneurship Memorandum is implemented from 1992 with the investment of 263 billion. Around a total of US$ 6.67 billion in investment is expected by 2008. During year 1991-06 Textile Industry, the Foreign Direct Investments inflows worth US$ 910 million have been received. Industry contributes around 1.29% of total FDI inflows in the country. 04 India Textile Policy 2000 For the growth and development of Indian Textile Industry and to make it more vibrant, Govt. of India passed National Textile Policy in 2000. Objectives of Policy To produce and provide good quality cloth in affordable price to fulfill different needs of customers. To increase the share of India in Global Textile Market. To increase the contribution for employment and economic growth of country. Facilitate the Textile Industry to attain and sustain a pre-eminent global standing in the manufacture and export of clothing. Liberalization of controls and regulations for the market development of different Textile Segments and to make them stronger to perform in competitive environment. Encourage FDI and R&D to improve the manufacturing capabilities and infrastructure under the environmental standards. Facilitating financial support and arrangement to sector.

Highlights of Policy

Achieving the target of Textile and Apparel Exports from US $ 11 billion to US $ 50 billion by 2010. The share of garments is targeted US $ 25 billion. Increasing contribution of private sector through set up environment-friendly and technologically advance textile units and complexes. To De-reserve the Garment Industry from Small Scale Industry. To improve the availability, productivity and quality of Raw Materials. Improvement in quality of fiber/Yarn and its availability. To increase the Cotton productivity by at east 50 % and quality to match the international standard by implementing Technology Mission on Cotton. To make Silk and Sericulture sector strong, Govt. is aimed to improve R & D, Productivity of non-mulberry verities of silk. Encourage Private Sector to increase productivity, and to market the Wool products. Establishing Pre-Loom & Post-Loom facility. Developing high yielding seeds, to make farmers more technological efficient, creating potential market link, and diversified jute products are main concern for Jute Sector. Modernization and liberalization of Spinning Sector. Technological Up-gradation, Strategic Alliance with international textile majors, Improved Quality, and Productive HR environment are the concern for Organized Mill Industry. For Powerloom Sector steps such as, Technological Up-gradation, Increased Productivity and Modernization of the sector are going to be implemented. To Increase Productivity, Enhanced Marketing and Distribution, Technological Upgradation and increased Research Development in Handloom Sector. To Improve Export, Promotion, Technological Support, Infrastructure, Marketing & Distribution and R & D for the growth of Handicraft Sector. To increase Exports to 50 billion US $ by 2010, Increase FDI & Investment, and to Increase Infrastructure Support to export oriented areas.

Textiles Major Companies

Indian •

Madura Garments (Indian Rayon)

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Arvind Mills Ltd

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Raymond Ltd

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Alok Industries Ltd

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Welspun India Ltd

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Bombay Dyeing Abhishek Industries Ltd.

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Sangam India Ltd

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Provogue India Ltd

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Wills Lifestyle (ITC)

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Gokaldas Exports Ltd

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Indo Rama Synthetics (India) Ltd

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Vardhman Textiles Ltd

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Bombay Rayon Fashions Ltd

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S Kumars Nationwide Ltd

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Suryalakshmi Cotton Mills Ltd

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Century Enka Ltd

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Krishna Knitwear Technology Ltd

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RSWM Ltd

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SRF Ltd

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GHCL Ltd

International •

Aditya Birla Group

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Mauritius textile industries

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Applegate directly ldt

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Hebei Textiles import and export co. Ltd.

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Delta woodside Idustries, Inc, America.

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Johnston Industries N.V.-New-Hampshije

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Velcro Industries N.V.

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Millken and company

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Shaw Industris, Inc.

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Reeves Brothers. Inc

Textile Trade & Export Indian Textile industry is one of the major industries that plays vital role for exports and foreign revenue. The share of Textile Industry to country’s total exports is 16.63%. India’s contribution in global textiles and apparel market is 3.9% and 3 % respectively. The major sectors for exports are: Readymade Garments, Cotton Textiles, Textiles made from Man-Made fiber, Wool & Woolen Goods, Silk, Handicrafts, Coir & Jute. Exports in 2004-05: US $ 14 billion Exports in 2005-06: US $ 17 billion and registered 22% growth. Textile exports is increased by 11.43 % in rupee terms. After the expiry of Multi Fiber Agreement in 1st January 2005, The share of Indian Textiles exports in imports of USA is increased from 4% to 5%. The share of Indian Textiles exports in imports of EU is increased from 6% to 7%. During 2005-06, India’s total apparel exports were 8.63 billion US $.